On April 28, 2025, the City of Cleveland has enacted Ordinance No. 104-2025, a new law designed to combat wage discrimination and promote fair pay practices. Taking effect on October 27, 2025, the ordinance prohibits employers from asking job applicants about their salary history and mandates greater transparency in compensation during the hiring process.
Key provisions of the law include the following:
Applicability
The law will apply to positions that will be performed within Cleveland’s geographic boundaries, and “whose application, in whole or in part, will be solicited, received, processed, or considered in the City of Cleveland, regardless of whether the person is interviewed.” However, it will not apply to applicants for internal transfer or promotion, salary that are negotiated via a collective bargaining agreement or governmental employers.
Salary History Ban
Under the new law, employers with 15 or more employees in Cleveland, including employment and staffing agencies, are prohibited from requesting, requiring, or relying solely on a candidate’s current or prior salary when making employment decisions. Additionally, the ordinance bans employers from retaliating against applicants who choose not to disclose salary history.
Employers are still permitted to engage in discussions about an applicant’s compensation expectations and may inquire about unvested equity or deferred compensation the applicant may forfeit by leaving a current employer. Applicants who voluntarily disclose their salary history do not trigger a violation. The ordinance also does not apply to internal transfers, promotions, or positions covered by collective bargaining agreements.
Pay Transparency
Another key requirement of the ordinance is salary transparency. Employers must disclose the salary range or pay scale for any posted, advertised, or formally offered position.
Failure to Comply
The law will be enforced by the Fair Employment Wage Board (FEWB), which is authorized to receive and investigate complaints, attempt resolution, and impose penalties when necessary. Individuals may file a complaint with the FEWB within 180 days of the alleged violation. If a violation is found and not resolved, civil penalties may be imposed ranging from $1,000 to $5,000, depending on the employer’s history of prior violations within the last five years.
Next Steps for Employers
To prepare for compliance, employers should review and revise hiring policies, applications, and recruitment materials to remove any references to prior salary. Human resources teams should ensure that all managers involved in hiring are trained in the new requirements. Additionally, employers should establish or verify salary ranges for each position posted in Cleveland and ensure those ranges are included in job postings and communications with applicants.
HR Works Can Help
HR Works offers comprehensive compensation and benchmarking services. Virtual HR Helpline subscribers receive five free benchmarks each year (with the option to purchase the additional benchmarks for a fee). Current HR Works clients may contact their designated HR Consultant and Virtual Helpline subscribers can contact the helpline at hrhelp@hrwork-inc.com or 1-888-668-1271 for additional assistance. Non-HR Works clients who would like to learn more about these services and how to leverage our compliance expertise and support, may contact us at info@hrworks-inc.com or call 1-877-219-9062.
